Kinetic Motor sells 11% stake to Sanyang

The board of directors of Kinetic Motor Company, which met today, approved a proposal to issue 20,65,000 equity shares of Rs 10 each to Sanyang Industry Company (SYM) at Rs 66 per share (including the premium of Rs 56 per share) for an aggregate amount of Rs 13.63 crore.

According to a release issued by Kinetic Motor to the BSE today, the paid-up capital of the company will increase to Rs 18.57 crore from Rs 16.51 crore after the proposed allotment of 20.65 lakh shares on preferential basis.

"SYM would hold 11.12% of the increased equity capital of the company. Kinetic group would continue to hold majority shareholding (56.76%) post allotment of shares to the investor. There will not be any change in the control of the company subsequent to the allotment of shares on preferential basis," the release added.

An EGM of shareholders is scheduled to be held on February 7, 2006, to consider the preferential issue, the release said.